Tag - MIG

Meadowbrook Insurance Group Inc. (NYSE: MIG) cut its 2007 and 2008 earnings guidance Monday while the insurance broker and risk-management consultant also announced a proposed public offering of 7.3 million shares.

The Southfield, Mich.-based company said it now expects 2007 earnings of between $0.73 and $0.79 per share compared with previously forecasted net income of between $0.80 and $0.85 per share.  Three analysts surveyed by Thomson Financial expected the company to report earnings of $0.85 per share for the fiscal 2007 year.

Meadowbrook lowered its guidance on account of its public offering and its recent acquisition of U.S. Specialty Underwriters Inc. The company said the new guidance includes costs from amortization of intangible assets related to the acquisition of about $1.9 million, or $0.04 per share.

The public offering, also announced today, is for a total of 7.3 million shares; 1.8 million of the shares will be offered by Meadowbrook’s Chairman Merton Segal and his wife or her trust plan.

The company said the proceeds from the offering will be used to reduce the balance on the company's line of credit, support growth within its underwriting operations and fund potential acquisitions.